HomeMy WebLinkAboutR2015-002RX-11MM
RESOLUTION NO, .
A RESOLUTION ADOPTING TEXAS BUSINESS CODE, SUBTITLE B, CHAPTER 322, "THE
UNIFORM ELECTRONIC TRANSACTIONS ACT" TO PERMIT ELECTRONIC
SIGNATURES ON CERTAIN DOCUMENTS ENTERED INTO BY AND BETWEEN THE
CITY AND OTHER PARTIES AS A CITY POLICY; A RESOLUTION ADOPTING THE
PROVISIONS OF TEXAS LOCAL GOVERNMENT CODE, SECTION 252.0415,
ESTABLISHING A CITY POLICY REGARDING PROCEDURES FOR THE RECEIPT OF
ELECTRONIC BIDS AND PROPOSALS; PROVIDING THAT ALL BONDS AND
NEGOTIABLE INSTRUMENTS TENDERED TO THE CITY, OR BY THE CITY IN
SATISFACTION OF OR AS EVIDENCE OF OBLIGATIONS SHALL BEAR ORIGINAL
SIGNATURES; AND PROVIDING THAT THE CITY COUNCIL IN ITS SOUND
DISCRETION, MAY REQUIRE ORIGINAL SIGNATURES ON CERTAIN OTHER
DOCUMENTS IN THE BEST INTERESTS OF THE CITY; PROVIDING FOR THE LATER
MODIFICATION OF THE POLICIES BY THE CITY MANAGER AS DEEMED NECESSARY;
AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas is a Home -Rule City; and the City Council desires
to adopt State Law, as its policy, that law being the provisions of the Texas Business &
Commerce Code, Subtitle B, Chapter 322 known as the "Uniform Electronic Transactions Act,"
(hereafter the "Act ") which permits the acceptance of electronic signatures in lieu of original
signatures respecting certain documents; and
WHEREAS, the City recognizes that certain transactions to be entered into by the City
may be expedited by the acceptance of electronic signatures on documents; and that providing
for the acceptance of electronic signatures provides for the efficient conduct of City business, is
presently widespread and now is generally- accepted as being commercially reasonable; and the
provisions of Section 322.005(b) of the Act, provide that the Act applies only to transactions
between the parties that have agreed to conduct transactions by electronic means; and
WHEREAS, the City has determined that the provisions of the Texas "Uniform
Electronic Transaction Act" are interoperable with other Texas governmental entities, the entities
of other States, as well as the Federal Government, as provided by Section 322.018 of the Act;
and such provisions are subject to the rules of the Texas Department of Information Resources
and the Texas State Library and Archives Commission; and
WHEREAS, provided however, the City Council has determined that there is a valid
legal justification for requiring that any bond issued by the City, or provided to the City as
security for any obligation, bear original signatures; further the City Council has determined that
any negotiable instrument to be issued by or received by the City shall also bear original
signatures; the City Council has also determined that it shall require that any conveyance of real
property to or from the City shall bear original signatures; and the City Council hereby reserves
the right to require original signatures on any document in which it determines is in the best
interests of the City to do so; and
WHEREAS, the City Council has also determined that it is appropriate to adopt a policy,
in the form of an "Electronic Signature Policy;" and another policy as authorized in a "Materials
Management Division — Electronic Receipt of Bids and Proposals Policy" as permitted by Texas
Local Government Code, Section 254.0415, as a rule to ensure the identification, security and
confidentiality of electronically transmitted bids or proposals; and to ensure that such bids or
proposals remain effectively unopened until the proper time; and
WHEREAS, the Council concludes that this Resolution is in the best interests of the City
to have policies respecting the matter of electronic signatures; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The recitations contained in the Preamble of this Resolution are true and
correct and are here ..ere
by incorporated as a part of this Resolution.
SECTION 2. The City Council concludes that it should, and it does hereby, adopt the
provisions of State Law, being Texas Business & Commerce Code, Subtitle B, Chapter 322, the
Uniform Electronic Transactions Act; and it further adopts the provisions of State law, being
Texas Local Government Code, Section 252.0415.
SECTION 3. The City Council hereby additionally adopts the two following policies as
the City's policies, entitled "Electronic Signature Policy" (Exhibit "A" attached hereto); and the
"Materials Management Division — Electronic Receipt of Bids and Proposals Policy (Exhibit "B"
attached hereto), each of which policies may be as modified by the City Manager, who is hereby
empowered by the Council, to review and is authorized to make amendments thereto, as deemed
necessary.
SECTION 4. This Resolution shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the 3 day of , -..Ya4At4 2015.
J. CIS WA - .
1 S, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
�u
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APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By:
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City of Denton
Electronic Signature Policy
I. POLICY STATEMENT
Exhibit A
It is the objective of this policy to authorize electronic signatures on documents for certain City
transactions. This policy identifies the City of Denton's requirements for the use of electronic
signatures, electronic transactions, and electronic records in conducting the City's business and
service operations. This procedure will allow members of the City's community do business
electronically and use e- signatures to conduct City transactions that previously required
handwritten signatures and approvals on paper documents. This procedure establishes the
process for designating transactions requiring e- signatures and how the City accepts and verifies
e- signatures. This policy doesn't prohibit the use of handwritten signatures and approvals on
paper documents.
To increase the efficiency of City operations that require authorization and /or signature, the City
may allow the use of electronic signatures to conduct certain transactions that previously
required handwritten signatures and approvals on paper documents.
State and Federal Regulations eliminate legal barriers to using technology to create and sign
contracts and other records, collect and store electronic records, and conduct everyday
transactions electronically.
When using electronic signatures, City staff needs to be aware that signatures and the associated
data to validate the signature are an integral part of a record. The signature and all necessary
verification records shall be maintained for the full records life cycle. The records life cycle is
the life span of the record from its creation or receipt to its final disposition. It is usually
described in three stages: creation, maintenance and use, and final disposition. Final disposition
can mean permanent deletion or destruction. Therefore, the electronic signature documentation
must remain accessible for the full retention period of the record to which it is associated.
To the fullest extent permitted by law, the City accepts e- signatures as legally binding and
equivalent to handwritten signatures to signify an agreement.
III. BACKGROUND INFORMATION
Texas governmental agencies have implemented systems that include the electronic interchange
of information between agencies and the public. These systems have saved time and money and
improved the overall efficiency of government operations. The legal basis of these transactions
were generally established by means of traditional contract law or by administrative rules to
establish the procedures and legal consequences for the transactions. Texas state law, Texas
Business & Commerce Code, Subtitle B, Chapter 322, allows government agencies to take
advantage of additional electronic exchanges over the internet and other networks where
authentication is required.
City of Denton
Electronic Signature Policy
IV. DEFINITIONS
The Uniform Electronic Transactions Act (UETA) was enacted into law in Texas by the 77th
Legislature (Senate Bill 393) in May 2001, and became effective on January 1, 2002. UETA
provides definitions for several key terms that pertain to this Guide. Some of those definitions
are set out below.
"Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical,
electromagnetic, or similar capabilities.
"Electronic record" means a record created, generated, sent, communicated, received, or stored
by electronic means.
"Record" means information that is inscribed on a tangible medium or that is stored in an
electronic or other medium and is retrievable in perceivable form.
"Transaction" means an action or set of actions occurring between two or more persons relating
to the conduct of business, commercial, or governmental affairs. (Note: the term "transaction" is
intended to refer to the sending or acceptance of electronic records and electronic signatures by
state agencies, to and from other persons.
"Electronic signature (hereafter e- signature)" means an electronic sound, symbol, or process
attached to or logically associated with a record and executed or adopted by a person with the
intent to sign the record.
V. ACCEPTANCE OF &SIGNATURES
The City may elect not to use e- signatures for certain contracts and documents. As of
implementation date of this directive, e- signatures may not be used for bonds, negotiable
instruments and conveyances of real estate.
VI. IMPLEMENTATION OF E- SIGNATURE PROCESS
The acceptance of an e- signature transaction should meet the following principles:
• Signer must consent to utilize e- signatures in lieu of handwritten signatures by
accepting terms of use through the City provided third party document management
software. This consent shall be stored with each e- signed document.
• Signer may only enter their signature in the designated signature block and not enter
their signature in other signature blocks.
• Signer must input full name below e- signature if prompted.
• The time and date of the e- signature must be captured, stored, and available for
retrieval.
• The contents of the document, the "I agree" check box, typed full name, time, and date
of the transaction must be bound to the electronic record in perpetuity.
• The stored document must indicate that it was electronically signed.
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City of Denton
Electronic Signature Policy
• After signing, the document must be transmitted to all parties in a format acceptable to
the applicable City system (e.g., a document management system or database)
• The document and audit information must be available for retrieval by appropriate
City staff.
• The signature shall remain with the document through the appropriate retention period.
• Third party document management software shall be encrypted to a minimum of 256
bit encryption.
VII. MANAGEMENT
The document management software that collects e- signatures shall be maintained by the
Technology Services Director or his /her designee.
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Exhibit B
City of Denton
Materials Management Division
Electronic Receipt of Bids and Proposals Policy
I. POLICY STATEMENT
It is the objective of this policy to receive electronic bids and proposals for formal
solicitations placed on the marketplace by the City of Denton. The City adopts these rules
to ensure identification, security and confidentiality of electronic bids or proposals, and to
ensure that all electronic bids or proposals remain effectively unopened until the proper
time. This policy, as approved, is in compliance with the provisions of the Texas Local
Government Code Chapter 252.0415. This policy does not prohibit the submission of hard
copy (paper) bids and proposals.
The City shall provide a secure system to receive electronic bids and proposals and ensure
the proposal effectively remains unopened until the proper time through utilization of the
following:
1. The Purchasing Manager of the City of Denton or his /her designee shall serve as
the City's administrator over electronic bids and proposals. The Director of
Technology Services for the City of Denton, or his /her designee, shall ensure
technical components of the identification, security, and confidentiality of
electronic bids and proposals are maintained within the City of Denton's electronic
mail (e -mail) system.
2. An electronic bid or proposal is defined as the respondents' formal sealed bid or
proposal submitted through the City of Denton's e -mail system.
3. If submitting electronically, bids and proposals shall only be accepted if submitted
through the e -mail address identified in the solicitation document:
ebids Qacityofdenton.com. This is a confidential, reserved address for submittals of
bids and proposals only. Acceptable electronic bid or proposal formats will be
noted in the solicitation documents.
4. The bid or proposal response due date and time shall be clearly specified in the
solicitation document. A response received after the due date and time established
by the solicitation document is a late response. All late responses shall be returned,
electronically, with a cover email indicating the reason for rejection.
5. The clock system of the City's computer system is the Official Clock for all
Procurement matters, and will be the sole determiner of the time of day. All
responses must be in the possession of the Procurement Staff not later than the
published response due date and time in the solicitation document.
6. The City of Denton is not responsible for electronic bids or proposals containing
viruses that cannot be eradicated, or that are corrupted as a result. Additionally, the
City of Denton is not responsible for equipment or software failure that may cause
delay or non - delivery.
5. If a solicitation is cancelled, all responses shall be returned electronically, with a
cover letter indicating the reason for the cancellation.
6. As required by Texas statutes, certain solicitations require public openings. All
responses submitted electronically shall be opened after the due date and time as
City of Denton
Materials Management Division
Electronic Receipt of Bids and Proposals Policy
stated in the solicitation document, and read aloud, including the respondent's
name, pricing submitted, and if appropriate, the model number (if different from
specifications). The responses may be opened and read in any order.
7. All bids and proposals submitted electronically shall remain un- opened, until after
the due date and time that the procurement solicitation has closed. Users of the
City's e-mail system shall be assigned unique user names and passwords.
Procurement staff are restricted from opening electronic bids and proposals until
the solicitation due date and time has officially expired.
8, Once the solicitation due date and time has officially expired, Procurement staff
will download the applicable contents of the reserved mailbox, print them
accordingly, and prepare a pricing tabulation.
9. The City will maintain control of releasing appropriate information for public
disclosure, pursuant to Texas law.
III. MANAGEMENT
The City's Purchasing Manager is responsible for ensuring that system used for acceptance
of electronic receipt of bids and proposals complies with the aforementioned rules.
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